Tourism in Las Vegas, Nevada, has been lagging, and many believe that the soaring costs of food, drink, and accommodations, particularly on the Las Vegas Strip, are to blame. However, a recent interview with Craig Billings, the CEO of Wynn Resorts Ltd, one of the city’s ultra-premium properties, suggests that his customers demand luxury, while others on a budget may not be a good fit for his resort.
A Different Kind of Patron
Much has been made of the decline in tourism in Las Vegas, with many accusing the properties, especially those on the Las Vegas Strip, of jacking up prices on everything from mini-bar items to overnight parking. A Vegas vacation was once heralded as a glitzy destination for an affordable price.
Higher Rates and Tourism Concerns
However, many resort hotels have increased their rates, and some believe that has contributed mightily to the fall in tourism. However, one prominent CEO, Craig Billings of the premium property operator Wynn Resorts Ltd., believes his clientele is not typical of the family budget customers frequenting some of the less expensive properties.
“I think the summer activity, or the summer business environment, has been well publicized, maybe to the extreme here in Las Vegas,” Billings said, adding that his properties have focused on maintaining room rates and providing exceptional service and amenities.
“While we are unapologetic about premium pricing, we don’t ambush patrons with unexpected charges, so contrary to what you might expect, our mini bar prices are a fraction of some others in the market,” Billings said.
“We held out as long as we possibly could in charging for parking and really only began to do so when we were at risk of becoming the neighborhood parking lot. Even now, hotel guests park free, by the way.”
Wynn Brings Value
If you’re on a budget and looking for a cheap place to stay in Sin City, then steer clear of the Wynn properties. A room will run the average customer $375 to $1,800 a night in the off-season and $1,000 to $8,000 during the high season. Clearly, it’s not for everyone.
“Wynn Las Vegas is not necessarily built for those visiting Las Vegas on a tight budget,’ Billings recently told an analyst.
“Our customer generally isn’t the customer who focuses on cost alone.
“But they are the type of customer who is unrelenting when it comes to value for their dollar. Right? Their expectation of that perceived value could not be higher,” he added.
Value Over Cost
Billings believes it is not the cost per se, but the value his customers are getting for their dollar that allows them to operate successfully in this demographic. In that regard, Billings believes his company provides superior value by catering to his clients’ needs and providing value without swindling them for a few extra bucks.
‘Yes, our customer pays a premium room rate, but we don’t want them to feel nickel-and-dimed.
“So, because of that, we haven’t seen that pushback in pricing that others in the market might have, or at least that we’ve seen on social media,” Billings added.
